India's 12th Five-Year Plan Revitalizes China's Construction Machinery "Stagnant Pool"

2013-08-09 592 0人评论

  It is reported that in India's announced "12th Five-Year Plan" economic plan (2012-2016), India's infrastructure construction investment alone is expected to reach USD 1 trillion over the next five years, covering areas including highways, railways, urban infrastructure, commercial and residential buildings, ports, power, water conservancy facilities, mining, oil, natural gas, and airports. Between 2012 and 2030, India will invest at least 10% of its GDP in infrastructure construction.

  In addition, according to statistics, from 2007 to 2015, India's cumulative capital invested in the construction machinery market reached USD 40 billion. This means that over the next eight years, investment will increase by about 17% annually. At the same time, India's real estate industry is booming; rising household incomes and rapid urbanization are expanding India's middle class, and the urbanization rate is expected to rise from 28% in 2001 to 40% in 2030.

  Faced with growing infrastructure demand, the Indian government allows private enterprises to participate in infrastructure construction. Due to their distinctive financing characteristics, new financing methods such as BOT (Build-Own-Transfer), BOOT (Build-Own-Operate-Transfer), and BOLT (Build-Own-Lease-Transfer) have made many infrastructure projects possible. The Indian government grants enterprises undertaking infrastructure construction a five-year tax exemption period, which brings opportunities for the development of India's construction machinery equipment market. Although demand in India's construction machinery market is relatively large, constrained by various factors, India's construction machinery manufacturing industry is currently weak.

  Judging from India's current situation, increased infrastructure construction will drive demand for construction machinery and further stimulate a recovery in the construction machinery industry. However, only 28% of machinery locally available in India can meet domestic market needs. Therefore, for China, which exports to India, this will be a great opportunity. Chinese construction machinery, favored by the Indian market for its low price and rapid deployment, means India's "12th Five-Year Plan" economic plan is also indirectly driving the recovery of China's construction machinery sector.

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